The Prime Minister Dr. Manmohan Singh ruled out rollback in oil prices. <br/><br/>Talking to reporters onboard the flight back to India he said that the economy has capacity to absorb hike in prices without setting in motion any inflationary spiral. <br/><br/>Dr. Singh said that the increase in oil prices will affect Wholesale Price Index no more than 0.40 per cent. He said, the Opposition walkout from the Parliament on fuel price hike issue was wrong. <br/><br/>Dr. Singh said any increase in prices does hurt some people, but the Government has to take a long-term view. <br/><br/>Dr. Singh made it clear following populist fiscal policies for long harm the economy. He said, sooner or later these populist policies if persisted for a long time to come will lead to the erosion of the investment climate. <br/><br/>On Indo-Pak relations, Dr. Singh said, the issues between India and Pakistan can be resolved through meaningful dialogue if only it shows reasonable attitude in dealing with terrorist elements targeting India. <br/><br/>He asked Saudi Arabia to use its good offices to persuade Pakistan to desist from the path of terror. <br/><br/>The Prime Minister Dr. Manmohan Singh has termed his visit to Saudi Arabia as productive and fruitful. Dr. Singh said that both the countries have agreed to upgrade the quality of the bilateral relationship and work towards strategic partnership which will cover issues such as economy, energy, security and investment. <br/><br/>Prime Minister returned home after a three day visit to Saudi Arabia. <br/>